What Happens When a Startup Does Not Have an HR Department

If you're running a growing startup, would it be wise to create an HR government? Before you start anything, you will need to carefully consider whether your new business needs HR professionals to help your employment and human capital efforts.

Is company growth more important?

When you hire an HR professional, it means that you are spending money on smooth technical operations within the internal departments. You will also need to put more efforts on the improvement of human capital, rather than investing more money into company growth such as:

Sales
Research
Developing products and
Marketing

Since startups don't start with a lot of employees, most founders believe that it is not an urgent matter to create an HR department.

Maybe other employees can handle HR tasks instead?

The nature of startups is that almost every employee has to be able to multitask on a variety of functions. Many startup founders prefer to delegate HR tasks such as payroll to other division which sometimes has no relation with HR at all.

When it comes to recruitment, startup leaders also place the responsibility of hiring to the department managers instead, from job ads to hiring.

Now there are many HR applications that can help with HR processes such as payroll.

But we have software that can handle HR processes!

The latest advancements in HR technology have proved to be of great help to startups to perform HR tasks without the need for in-house HR professionals.

There are applications that can manage payroll, screen candidates and even help with the onboarding process.

But the reality is that:

HR is very important for your company

Some companies underestimate the function of HR, they think they can just search the internet for answers on HR problems such as wage, working hours, and employee complaints.

Without an HR department, the conflicts between workers can grow through time. There's also a case for compliance, many non-HR professionals don't realise the trouble they can get from legal issues related to government regulations such as labour and employment laws.

These matters can only be properly managed by an experienced HR professional. It is not something a search engine can do. Sure, some HR software can help with HR processes, but they lack the human touch that HR professionals have.

An HR department is more than just administrative tasks and paperwork. Sure, in the beginning, it's easy to manage employee headcount and solving employee issues.

But as the business expands, you will need a specific strategy to regulate the existing human resource.

An HR professional is more than just someone who handles HR matters, they make sure your company comply with the law.

When should you hire HR?

There is no specific requirement needed when you're creating an HR department. However, if you are reaching more than 50 employees in your startup, you should already invest in hiring in-house HR professionals.

These are the reasons why you should hire HR professionals:

HR professionals ease the manager's workload.
They also help ensure that the workplace stays productive and free of conflicts.
They also maintain the strategy aligned with long-term business goals.
HR staff also handles employee payroll, benefits, attendance, compliance, and many other HR processes.

Yes, maybe, in the beginning, you can use HR software to manage HR processes, but there comes a time when you truly need to hire an actual HR professional to help you run your business smoothly.

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